EY Moving Atlanta Office To Portman's New Midtown Tower
Portman Holdings has snagged one of the world’s largest accounting firms as the debut tenant at its Ten Twenty Spring office tower in Midtown.
EY is building out three floors at 1020 Spring St. NW, the office component of Portman's Spring Quarter mixed-use project, according to a permit application filed last week.
“We are thrilled to announce EY Atlanta’s upcoming move to the Spring Quarter building next summer,” EY Managing Partner Regenia Sanders said in an email to Bisnow. “Our new space will enable EY Atlanta professionals to help our clients shape the future with confidence.”
Brandon Hill, a project executive with the general contractor HITT Contracting, filed three separate space alteration permits at the building, spanning 31,700 SF each for a total of 95K SF at a cost of $20.1M.
EY currently occupies 110K SF at 55 Allen Plaza, which means the move to Ten Twenty Spring represents a downsizing.
Portman delivered the 525K SF Ten Twenty Spring building without any office tenants late last year. Spring Quarter also includes Sora at Spring Quarter, a 370-unit apartment tower. Plans for a third tower, which would operate as a hotel, have been shelved, The Atlanta Journal-Constitution reported.
Portman built the 25-story office tower at Spring and 10th streets on the land next to the former H.M. Patterson & Son’s Spring Hill Chapel funeral home. Portman preserved the former funeral home building and is transforming it into an event space and restaurant, the AJC reported.
Goldman Sachs provided a $224.2M construction loan for the project in 2022. The debt is set to mature in May 2027, according to data compiled by real estate database Reonomy.
EY's relocation to Spring Quarter comes after months of scouting the Midtown office market for a move from 55 Allen Plaza in Downtown Atlanta.
Portman didn't respond to messages seeking comment. CBRE, the firm that led EY’s office search, declined to comment. According to an agreement between EY and Goldman Sachs, acting as an agent to the lender of Portman’s Spring Quarter project, the lease between Portman and EY was signed on Aug. 2.
The global accounting firm represents 971 public firms, the most of any of the big four accounting firms.
EY moved its office to the 349K SF 55 Allen Plaza office tower, lording over the Interstate 75/86 Interchange, as its debut tenant in 2005.
The building was developed by the late Atlanta developer Hal Barry and lured EY, then known as Ernst & Young. In 2011, Barry lost 55 Allen Plaza to foreclosure, with the property picked up by the Teachers’ Retirement System of the State of Illinois for $57M.
The Illinois pension fund then sold it to Lone Star Funds in 2020 for $79M, just before the onset of the coronavirus pandemic.
Sound Point Capital Management obtained the 14-story office tower, part of the Ivan Allen Plaza office complex, in a deed-in-lieu-of-foreclosure transaction in March at a value of $57.8M from Lone Star, Bisnow previously reported.
